Project Summary

Energy flexibility is essential to transforming to a Net-Zero energy system. For customers adopting low carbon technologies, smart management of these flexible assets will empower them to use less energy, reduce bills, and make the most of low carbon energy.

KnowMyFlex proposes to create Energy Flexibility Certificates  – similar to EPC ratings – to provide a centralised view of the existing and future flexibility potential of homes and buildings – to help customers engage with flexibility to reduce their bills; support market participants in developing propositions; and enable system operators to better forecast, plan, and operate the energy system, reducing costs for all.

Innovation Justification

KnowMyFlex’s innovation lies in developing EFCs designed to offer homeowners a straightforward and intuitive means of gauging their home's capacity to engage with the smart energy system. Additionally, it highlights the associated financial and carbon savings achievable through such participation.

The primary users of EFCs will be consumers, addressing an information and understanding gap. It can help price a value on flexibility to incentivise home upgrades that can also increase property value.

System Operators will also be users of EFCs as they can be used to optimise network planning and manage constraints, taking account of existing and potential flexibility and projected uptake of LCTs.

The same information can be also used by Local Authorities to inform development of Local Area Energy Plans (LAEPs) and design of intervention programmes to support vulnerable and fuel poor customers. Similarly, the concept provides an opportunity to integrate with the ENA Direct Connect tool, streamlining processes for LCT installers. Finally, the EFCs data will be useful for market participants seeking to engage consumers and develop and target propositions to drive engagement and uptake.

The methods, tools, and processes to create EFCs do not exist, and this project will test the concepts for their provision. KnowMyFlex aims to identify use cases and develop enabling infrastructure for the EFC concept. The research output specifies a set of metrics for flexibility which are combined for a single flexibility certificate for a property. In parallel, Centre for Net Zero (CNZ) has published a press release outlining the concept of Smart Building Rating (SBR) which has similar intention to visualise flexibility and track roll out of LCTs. The project will align with the CNZ to maximise synergies in the work. Both SBR and EFC are concepts that require development of the enabling infrastructure and commercialisation models. CNZ will support the Discovery Phase as a stakeholder to guide thinking and also be a potential partner for future phases.

Current readiness levels for EFCs are low, with the Discovery aiming to move TRL from.4 to 5; CRL from 1 to 4; and IRL from 0 to 2.

This funding cannot be justified as BAU within the price control as this novel approach requires validation and would be an industry-wide initiative. The counterfactual solution is to rely on flexibility providers to report available flexibility in response to flexibility tenders.

Impacts and Benefits

Numerous studies have estimated the value of flexibility – for instance the Flexibility in GB report by Imperial College and the Carbon Trust which estimates annual savings of £16.7bn per year by 2050 in an electrified heating scenario, with the majority of additional flexibility compared to today coming from the smart use of EVs and domestic heating. Today, only motivated customers are engaging with flexibility propositions, with others left behind. Networks have limited visibility of flexibility, and EFCs seek to promote customer engagement and visibility of flexibility to assist in delivering these benefits.

Financial - future reductions in the cost of operating the network

EFCs enable network operators to optimise their strategic investment planning against the available flexibility potential and uptake of LCTs, thereby deferring and reducing network reinforcement. Flexibility can also be used to reduce operating costs such as the need for emergency repairs and temporary generation following outages.

Financial - cost savings per annum on energy bills for consumers

EFCs are expected to increase understanding of flexibility by customers and encourage them to access flexibility propositions from suppliers and aggregators. With the market-wide half-hourly settlement transformation, more customers will have opportunity to take advantage of the time-varying tariffs and reduce their bills through flexibility.

Environmental - carbon reduction – direct CO2 savings per annum

With EFCs, households will have better visibility of options for LCTs suitable for their property, and potentially a wider array of propositions proposed to them by service providers. They will be encouraged to participate in LCTs like rooftop solar, and to allow their demand to be managed to take advantage of low carbon generation when it is available.

Environmental - carbon reduction – indirect CO2 savings per annum

A reduced need for network expansion could reduce the consequential embodied carbon of asset delivery programmes.

Revenues - improved access to revenues for users of network services

EFCs offer a way of accessing key information about flexibility (existing and potential) from a household that can be used by energy retail suppliers to offer a tailored tariff or product.

New to market – products, processes, services

EFC enabling functions would require new processes introduced by the primary stakeholders (e.g. network companies) and will encourage new products and services enabled by EFCs.

Others that are not SIF specific

Improved visibility of assets connected to the network so that DNOs have a complete asset register.